Getting a Mortgage in the UK in 2026. Dispelling the myths

A mortgage is one of the biggest commitments you will take on. When deciding to buy a home, you need to be aware of the possible obstacles you will encounter. One of these is the rejection of your mortgage application. In today’s article, we’ll address seven common myths and show you how getting a mortgage in the UK really works.

Getting a mortgage in the UK - application form

Myth No. 1: Due to high interest rates and economic uncertainty, I will need a significantly larger deposit.

Just as the British were regaining hope for cheaper mortgages following a series of interest rate cuts and the bringing of inflation under control, a war broke out between the US and Iran in February 2026, which could have severe consequences for the UK economy. It is predicted that inflation, currently at 2%, could reach as high as 3.5% by the middle of the year, and interest rates are likely to rise alongside it. Intuition might suggest that, given the uncertain future, banks may require higher deposits to ensure greater security. Fortunately, this is not the case.

Interest rates are not directly linked to deposit requirements. In recent years, there have been several changes in the mortgage market that favour those with limited savings. Firstly, the government’s Mortgage Guarantee Scheme has become an integral part of the market, meaning that banks are more willing to grant mortgages even with a 5% deposit. In addition, the Mortgage Rules Review 2025 has allowed for more lenient creditworthiness assessment criteria and given banks greater flexibility regarding mortgage collateral. More and more products are emerging that offer alternative collateral and sometimes even 100% LTV:

• Mortgages for tenants, where banks treat a history of rent payments as evidence of creditworthiness (e.g. the Track Record Mortgage from Skiption Building Society);
• Mortgages with a family deposit;
• Mortgages with a guarantor;
• JBSP mortgages.

Rising interest rates affect another aspect of a mortgage – its cost. When the cost of borrowing rises, banks increase interest rates. This means that mortgages may soon become slightly more expensive than they have been so far. Remember that although a larger deposit is not required in such a situation, it is highly recommended, as it gives you access to more attractive mortgage offers with lower interest rates.

Myth No. 2: If I have a low credit score, nobody will lend me money

If you think that a low credit score automatically rules you out of getting a mortgage, we have some very good news for you – that’s absolutely not the case! When deciding whether to lend money, bank analysts take into account a range of factors, such as your age, income, address, occupation and credit history. If your credit score is low, for example because you haven’t made any instalment purchases, the bank’s decision doesn’t have to be a rejection, although your chances of success are slightly lower. There are several proven ways to improve your credit score, sometimes even immediately. Occasionally, your credit report may also contain errors that lower your final score – in which case, you simply need to contact the relevant CRA and request a correction.

You are in a slightly worse position if your credit report contains negative entries, for example resulting from late payments or debt enforcement proceedings. Even if you have missed a payment deadline or been subject to debt collection, your chances are not zero. They are simply lower, and the offers from banks may be less attractive.

If you are unsure about your creditworthiness, be sure to book a free consultation with an advisor. Within a few dozen minutes, you will find out whether it is worth applying for a mortgage in your situation, or whether you should hold off for now and spend a few months improving your credit score.

Myth No. 3: If I’m 50, I’m too old for getting a mortgage

Contrary to what you might think, it is very rare for a mortgage application to be rejected because of the applicant’s age. The banks’ offers vary greatly, and in many cases, at the age of 50 you might be capable of getting a mortgage for 25 or even 30 years. Of course, it all depends on your income and projected pension, which will usually be less than your last salary.

In practice, the bank determines the maximum age at which the borrower will complete the repayment of the mortgage. For example, if such a barrier is set at 80 years, a person aged 55 will receive a mortgage for a maximum of 25 years, but someone aged 45 will be able to repay their home for up to 35 years. Usually, the age limit is between 70 and 85 years, so if you are older than 45, be sure to take this criterion into account.

Those who are over 55 should consider an interesting alternative to conventional mortgages in the form of so-called RIO mortgages. In their case, you pay only the interest on the borrowed principal to the bank, and the contract is perpetual - it ends upon your death.

Myth No. 4: Getting a mortgage when self-employed is very challenging

As a general rule, banks look at universal criteria such as stability and amount of income, property value and credit history. Although proving your income as a self-employed person involves a bit more paperwork, it is not a factor that would seriously jeopardise your application – especially in the age of Open Banking, when banks use advanced algorithms to analyse their customers’ finances automatically.

If you are self-employed, have a stable and sufficiently high income and are anxious of getting a mortgage, everything is within your reach. Your chances will further increase if you hire a good credit counselor and an accountant who knows his job. However, we must conclude that a self-employed person earning £60,000 a year is likely to get a smaller mortgage than someone who earns the same income but on a contract basis. However, this can be made up for, for example, by making a substantial down payment.

If you’d like to find out more about the situation for the self-employed when it comes to mortgages, we invite you to read our article entitled “Mortgages in the UK for the self-employed – questions and answers”

Myth No. 5: Lowest interest rate = cheapest mortgage

Although it may not be intuitive, the cheapest mortgage will not necessarily have the lowest interest rate. The total cost of your commitment will be driven by a number of factors, most notably:

• The type of contract - A tracker mortgage could end up being much more expensive if the Bank of England raises interest rates. A fixed-rate mortgage, on the other hand, means that if interest rates fall, your repayments will only decrease several months or even years after the decision is implemented.
• Duration of the offer - if you decide on getting a mortgage with a fixed rate, your installments can remain constant for 2,3 or 5 years, and this affects the total cost of the mortgage.
• Fees and commissions - in some cases, the application fee is more than £1,000. Although this is a relatively small amount compared to the price of the whole property, it can determine the choice of a particular mortgage.

Our blog features an article entitled Is it worth avoiding mortgage commission? If you’re thinking about buying a home in the near future, a few minutes spent reading this post could be an investment that brings in a few hundred or even a few thousand pounds.

Myth No. 6: There is no point in looking around for a mortgage until I find a property

In fact, the exact opposite is true. There is no point in looking around for a property unless you start talking to your adviser about a mortgage. First of all, the mortgage determines the amount of money you will be able to spend on the purchase of your new home, and calculating it is not at all that simple. In addition, one of the main tasks of a mortgage adviser is to bail you out of all the tasks that you don’t have to do personally. As a result, dealing with getting a mortgage will not be time-consuming for you - at the same time, you can look around for a property.

In addition, if you apply for a Decision in Principle (DIP), you will be a more attractive buyer for the current property owner, as the whole transaction will go noticeably faster. Many times we have witnessed situations where our client has lost an opportunity to purchase a property because he took care of arranging financing for the transaction too late.

Myth No. 7: If you have recently changed jobs, you have to wait before getting a mortgage

Even if you changed jobs a few weeks ago, this should not be an obstacle to getting a mortgage. Bank analysts are aware that seniority does not always translate into income stability. If you have increased your income with the change of employment, this may even be a big advantage.

If your career is going in the right direction and a job change results in a promotion, you have nothing to worry about. Worse, if you’ve completely changed careers, have a long probationary period or have moved to a temporary contract - this is exactly what banks discourage. Whatever your situation, a good solution is to contact a mortgage adviser, such as Extend Finance. Our many years of experience and knowledge of the sector mean that we are able to dispel your doubts.

Summary

Are you buying your first property? Or have you grown a family and it’s time to buy a new, more spacious home? Whatever your answers to the above questions, arrange a no-obligation, free consultation. We’ll help you through the entire UK property buying process!